XML 22 R12.htm IDEA: XBRL DOCUMENT v3.25.1
Property Casualty Loss and Loss Expenses
 3 Months Ended
Mar. 31, 2025
Premiums Written, Net [Abstract]  
Property Casualty Loss And Loss Expenses Property Casualty Loss and Loss Expenses
This table summarizes activity for our consolidated property casualty loss and loss expense reserves:
(Dollars in millions)Three months ended March 31,
20252024
Gross loss and loss expense reserves, beginning of period$9,937 $8,975 
Less reinsurance recoverable269 362 
Net loss and loss expense reserves, beginning of period9,668 8,613 
Net incurred loss and loss expenses related to:  
Current accident year1,978 1,370 
Prior accident years(91)(100)
Total incurred1,887 1,270 
Net paid loss and loss expenses related to:  
Current accident year593 205 
Prior accident years806 832 
Total paid1,399 1,037 
Net loss and loss expense reserves, end of period10,156 8,846 
Plus reinsurance recoverable551 332 
Gross loss and loss expense reserves, end of period$10,707 $9,178 
 
We use actuarial methods, models and judgment to estimate, as of a financial statement date, the property casualty loss and loss expense reserves required to pay for and settle all outstanding insured claims, including incurred but not reported (IBNR) claims, as of that date. The actuarial estimate is subject to review and adjustment by an inter-departmental committee that includes actuarial, claims, underwriting, loss prevention and accounting management. This committee is familiar with relevant company and industry business, claims and underwriting trends, as well as general economic and legal trends that could affect future loss and loss expense payments. The amount we will actually have to pay for claims can be highly uncertain. This uncertainty, together with the size of our reserves, makes the loss and loss expense reserves our most significant estimate. The reserve for loss and loss expenses in the condensed consolidated balance sheets also included $73 million and $68 million at March 31, 2025, and 2024, respectively, for certain life and health loss and loss expense reserves.

We experienced $91 million of favorable development on prior accident years, including $43 million of favorable development in commercial lines, $19 million of favorable development in personal lines and $9 million of favorable development in excess and surplus lines for the three months ended March 31, 2025. Within commercial lines, we recognized favorable reserve development of $35 million for the commercial property line and $11 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. Within personal lines, we recognized favorable reserve development of $19 million for the homeowner line.

We experienced $100 million of favorable development on prior accident years, including $38 million of favorable development in commercial lines, $33 million of favorable development in personal lines and $3 million of favorable development in excess and surplus lines for the three months ended March 31, 2024. Within commercial lines, we recognized favorable reserve development of $22 million for the commercial property line and $12 million for the workers' compensation line due to reduced uncertainty of prior accident year loss and loss adjustment expense for these lines. Within personal lines, we recognized favorable reserve development of $25 million for the homeowner line and $5 million for the personal auto line.